Michigan recently passed legislation that involves motor fuel
pulled from a terminal rack in Michigan. The legislation
becomes effective April 1, 2001, and requires that the
Michigan terminal operator charge and collect either the
Michigan motor fuel tax (if the fuel is staying in Michigan)
or the destination state’s motor fuel tax (Ohio’s tax if the
fuel is destined for Ohio). This legislation is in direct
conflict with Ohio’s motor fuel law which specifies that the
Ohio licensed motor fuel dealer is the taxpayer and subject
to Ohio’s motor fuel tax on all motor fuel imported into this
state by the Ohio licensed dealer.

We have advised the Michigan Department of Treasury that the
Ohio licensed motor fuel dealer, and not the
Michigan terminal operator, is responsible for reporting and
paying Ohio’s motor fuel tax. While we cannot control what
Michigan does, it is possible that if you pull fuel from a
terminal in Michigan, you will be charged either the Michigan
or Ohio motor fuel tax. You are still responsible for
reporting and paying the Ohio motor fuel tax on your Ohio
monthly motor fuel tax return. Such purchases may
not be reported as tax-paid purchases. We
suggest you contact the Michigan Department of Treasury to
determine whether a refund of the tax paid to the Michigan
terminal operator will be available once the fuel is imported
into Ohio. Please contact us at (855) 466-3921 if you have
any questions.